Massachusetts sues, S.E.C. settles.
On Friday, December 2, 2011, newspapers reported that Massachusetts had filed a Complaint the day before against major investment banks over their alleged Mortgage Lender/Servicer unfair and deceptive business practices. See, e.g., Gretchen Morgenson, "Massachusetts Sues 5 Major Banks Over Foreclosure Practices" p. B1, col. 2 (New York Times Nat'l ed., "Business Day" Section, Friday, December 2, 2011).
On Saturday, December 3, 2011, newspapers continued to report on many reasons why the Federal Government's S.E.C. cannot sue major investment banks over their practices, including that the S.E.C. lacks the resources, cannot make a case, and the horrible things that could happen if the S.E.C. sued and failed. See, e.g., James B. Stewart, "Few Avenues for Justice in the Case Against Citi" p. B1, col. 1 (New York Times Nat'l ed., "Business Day" Section, Saturday, December 3, 2011). See generally Hank Stern, "Cavalcade of Risk #145: Insurance Fest edition" (posted on Insureblog.blogspot.com on Wednesday, November 30, 2011); Van Mayhall, "Cavalcade of Risk, No. 145 -- Insurance Fest" (posted on insuranceregulatorylaw.com on Wednesday, November 30, 2011).
How can Massachusetts find the resources and the will to sue where the Federal Government can only settle?
Is the S.E.C. too big to fail?
Please Read The Disclaimer.
Comments